Buying or leasing property in Bali as a foreigner: what the law allows in 2026

This guide is for expats, digital nomads and long-stay visitors who are thinking about buying a house or apartment in Bali, or signing a long lease. The short version: foreigners cannot hold freehold land in Indonesia, but they can use a right-of-use title (Hak Pakai) for a home, own an apartment unit in some cases, lease land, or hold land through a locally incorporated company. Since 2025 Bali has also tightened enforcement, including a provincial regulation against nominee ownership. Rules change often, so confirm every point with the land office (BPN) or a licensed notary/PPAT before paying anything. This is general information, not legal advice.

The short version

• Hak Milik (freehold) is for Indonesian citizens only. A sale of freehold land to a foreigner, directly or indirectly, is void under the 1960 Agrarian Law.
• A foreigner with valid immigration documents can own a landed house on Hak Pakai land, or an apartment unit, within limits on price, plot size and use.
• Leasehold (Hak Sewa) is a private contract, not a land title. Its protection depends on the paperwork.
• Nominee arrangements, where an Indonesian "holds" land for a foreigner, give the foreigner no legal protection and are now an enforcement target in Bali.
• Check the title, the zoning, whether the land is protected farmland or state land, and the building permits before any money moves.

What each land title means

Indonesian law separates the right to the land from the building on it. These are the rights that matter to a foreigner.

Title	Who can hold it	Term	What it means for a foreigner
Hak Milik (freehold)	Indonesian citizens only	No fixed term	Not available. A foreigner who receives it by inheritance or through a marriage property mix must release it within one year.
Hak Guna Bangunan (HGB, right to build)	Indonesian citizens and legal entities incorporated in Indonesia	On state land or management-right land: up to 30 years, extension up to 20, renewal up to 30. On freehold land: up to 30 years, renewable by new deed	Not for foreign individuals. A foreign-owned company (PT PMA) can hold it because the company is incorporated in Indonesia.
Hak Pakai (right to use)	Includes foreigners	Same 30, 20, 30 pattern on state and management-right land. On freehold land: up to 30 years, renewed by a new PPAT deed	The normal title for a foreigner's own home.
Hak Sewa (lease for buildings)	Includes foreigners who reside in Indonesia	Set by the contract	A contract with the landowner, not a title registered in the lessee's name.
Hak Milik atas Satuan Rumah Susun (apartment unit title)	Includes foreigners	Tied to the land right under the building	Allowed within limits, see the apartment section.

Thirty plus 20 plus 30 adds up to 80 years on paper, but extension and renewal are not automatic. Government Regulation 18/2021 ties them to conditions: the land is still used as granted, the holder still qualifies, the land still fits the spatial plan and it is not needed for public interest. An extension must be applied for before the term ends. A Hak Pakai on private land is shorter, with a new agreement needed with the landowner after 30 years.

A fourth concept, Hak Pengelolaan (management right), is held by state or regional bodies. Hak Pakai and HGB can be granted on top of it, and a foreigner's house can sit on such land under a land-use agreement.

Foreign home ownership through Hak Pakai

Government Regulation 18/2021 (in force since 2 February 2021, implementing the Job Creation Law) and the land ministry's Regulation 18/2021 set the current framework. They replaced the earlier 2015 and 2016 regimes.

Who qualifies. A foreigner holding immigration documents issued by the competent authority. Officials in Bali said in 2023 and 2024 that any type of stay permit can do, including visa on arrival, as long as the person has valid immigration status when the transaction is made. Ownership does not give a right to live or work in Indonesia, and the reverse also applies.

Which homes. A landed house on Hak Pakai land granted directly by the state, on freehold land under a Hak Pakai agreement made in a PPAT deed, or on management-right land under a land-use agreement. If a foreigner buys a house on Hak Milik or HGB land, the land right is changed to Hak Pakai.

Limits. The regulation names four: a minimum price, a land area limit, a limit on the number of plots or units, and use as a residence only. In the ministerial regulation, landed houses must be in the luxury category, limited to one plot per person or family and 2,000 square metres. More land or more plots can be allowed with the Minister's permission if the project has a positive economic and social effect.

Inheritance and loss of eligibility. A foreigner's home can pass to heirs, and foreign heirs need valid immigration documents. A Hak Pakai holder who stops meeting the conditions must release or transfer the right within one year, otherwise it lapses by law. Ask a notary how this applies if a visa or permit ends.

Minimum prices

The minimum prices are set by a ministerial decree, number 1241/SK-HK.02/IX/2022 of 2022. News reports in 2023 and 2024 reproduced these figures:

Region	Landed house	Apartment unit
Bali	Rp 5 billion	Rp 2 billion
Jakarta	Rp 5 billion	Rp 3 billion
Banten, West, Central and East Java, Yogyakarta	Rp 5 billion	Rp 2 billion
West Nusa Tenggara (including Lombok)	Rp 3 billion	Rp 1 billion
Other provinces	Rp 1 billion to Rp 2 billion, depending on the province	Rp 1 billion

Treat these as a guide, not as confirmed current figures. They come from press reproductions of a 2022 decree, not from the decree text, and no newer decree turned up in the sources reviewed. In July 2025 a Bali land office official cited different numbers (a minimum building spend of Rp 3 billion and plots of 2,000 to 5,000 square metres), which does not match the table or the 2,000 square metre cap above. Ask the land office or a licensed notary for the figure that applies on the day.

For scale, the Bali land office said that by March 2025 there were 463 parcels with Hak Pakai certificates held by foreigners, mostly built up as houses or luxury villas.

Apartments and condo units

A foreigner can own an apartment unit under a unit title (SHM Sarusun) in a building on Hak Pakai or HGB land. When the land is HGB, the owner's share of common parts is calculated without the land, and the land-related obligations stay with the unit owner. The ministerial regulation limits foreign ownership to commercial-category apartments, and Article 71 of Government Regulation 18/2021 ties foreign-owned units to buildings in special economic zones, free trade zones, industrial areas and "other economic areas". How that wording applies to a given Bali project is a question for the land office or notary, not for the sales brochure.

In Bali, a 2026 property consultancy briefing reported by Antara said apartments are mainly sold as leasehold rather than HGB, that customary law must be considered alongside national law, and that building permit (PBG) and functional worthiness certificate (SLF) checks are tightening. A "leasehold apartment" gives a lease, not a unit title, so the two are very different purchases.

Also check that the project is classed as residential or mixed-use. On 19 January 2026 the Constitutional Court (Decision 198/PUU-XXIII/2025) found that standalone non-residential apartments have no clear basis in the Apartment Law and gave lawmakers two years to fix it. Buyers in such projects can have trouble obtaining unit certificates.

Leasehold in Bali

A lease is a contract with the landowner. The agrarian law's lease provision sets no maximum term, so the length is agreed between the parties. A 2024 report said leasehold is often used by foreigners, typically for 25 years or more. Leases are widely used, but the lessee holds contract rights only.

Points that protect a long lease:

• Confirm the lessor is the registered holder of the land and that no mortgage, dispute or heir claim sits on the certificate.
• Government Regulation 18/2021 (Article 90) allows a lease or sale-and-purchase binding agreement over registered land to be noted at the land office, in the register and on the certificate. Ask whether this is possible and who pays.
• Have the lease made as a notarial deed, with the permitted use, the building rights, who obtains permits, the extension option and what happens to buildings at the end written in.
• Under the Civil Code, a sale of the land does not by itself end an earlier lease unless that was agreed when the lease was made, so a signed and dated lease in principle protects the lessee against a later buyer.
• Do not build on leased land without the permits. A building that conflicts with the spatial plan can be ordered demolished, whatever the lease says.

Buying through a company (PT PMA)

A PT PMA is a limited liability company incorporated in Indonesia with foreign shareholders. Because it is an Indonesian legal entity, it can hold HGB and Hak Pakai under Government Regulation 18/2021.

The company must be a real business. It needs a business licence for what it does, a minimum investment threshold applies (ask the investment ministry for the current figure), and it has ongoing tax and reporting duties. Running villas as rentals requires tourism business registration. Bali's tourism office said in late 2025 that it would start with rental villas when enforcing business licences, a governor's cross-agency team has been auditing tourism permits since June 2025, and the Bali tax office said in August 2025 that it would match villa data with tax filings and treats foreign owners like Indonesian ones. A June 2024 Badung assessment, reported in 2025, found 226 rental villas operating under permits for luxury private homes. A Bali land office official said in July 2025 that foreign investment structures can create control the land office cannot detect, a sign that such structures draw attention.

Nominees, marriage and "borrowed names"

A nominee arrangement means an Indonesian buys land in his or her own name while the foreigner pays and controls it, usually with side agreements. The law is blunt about this.

• Article 26 of the 1960 Agrarian Law makes any transaction meant to transfer freehold to a foreigner, directly or indirectly, void by law. The land then falls to the state, other parties' rights stay, and the payments the seller received cannot be reclaimed.
• Bali's DPRD passed a regional regulation on 29 December 2025 controlling the conversion of productive farmland and banning nominee transfers of land. Later news reports cite it as Regional Regulation 4/2026. The governor said the nominee ban applies to foreigners. The sanctions were not stated in the reports reviewed, so ask a lawyer for the text.
• A Bali land office official said in July 2025 that nominee schemes exist and can be hard for the land office to detect.
• In September 2026 the governor led the demolition of a villa in a forest area in Buleleng, saying there were signs a foreigner had funded it under local names. The owners had no building approval or groundwater permit.

Marriage to an Indonesian does not open freehold either. Under Government Regulation 18/2021 (Article 70), an Indonesian citizen married to a foreigner can hold land rights like any other citizen, but the land counts as separate property, not joint marital property, only if this is proved by a separation-of-property agreement made in a notarial deed. Since a 2016 Constitutional Court ruling, couples can sign such an agreement during the marriage, not only before it. Without it, a foreign spouse's share in jointly owned freehold or HGB land can trigger the one-year release rule. In 2025 Bali politicians also raised concern about contract marriages used to get around land rules.

Due diligence in Bali

Title and seller

• Ask the land office to check the certificate (sertipikat) against its register. Electronic certificates now carry a single 14-digit parcel number (NIB-El), which can be checked in the Sentuh Tanahku app.
• Old customary land documents such as girik stopped counting as proof of ownership after 2 February 2026. Owners were urged to register such land through the national land registration programme (PTSL).
• Verify the seller's identity, marital status, co-owners and heirs, and ask the land office whether any court case is noted on the title (Article 91 of Government Regulation 18/2021 allows this).
• A November 2025 regulation (GR 48/2025) strengthened the state's power to take over deliberately neglected land. Ask whether the land has been left unused, since that can put a title at risk.

Zoning and land classification

• Check the spatial plan (RTRW, and the detailed plan RDTR where one exists) and the planned use of the parcel. The land ministry's GISTARU portal offers online spatial plan tools. A spatial-suitability approval (KKPR or PKKPR) may be needed for the planned use.
• Rice fields are the biggest trap. Presidential Regulation 4/2026 replaced the 2019 rules on protected rice fields (LSD). Rice fields on LSD maps that are not yet designated sustainable food farmland (LP2B) cannot be converted without a ministerial recommendation, and LP2B land cannot be converted except for narrow public purposes. Permits issued in breach of the LP2B rules are void by law.
• Bali was reported in November 2025 to have LP2B at about 62 percent of its baseline rice land against a national 87 percent target, and in September 2026 Bali was still below 87 percent. More land can be designated protected. Ask whether the plot is in a pending designation, and check both online map tools and the local land office.
• Coastal and green space: Presidential Regulation 51/2016 defines the coastal setback as land along the shore at least 100 metres from the highest tide mark, set by local authorities from a calculation. Enforcement is visible: in June 2025 Bali's regional legislature recommended demolishing at least 45 tourism businesses at Bingin, saying they stood on state land without permits.
• Temples: Bali's spatial plan has long included a sacred radius around temples based on a decree of the Hindu religious council (the Bhisama), alongside limits on building height and setbacks from cliffs and beaches. This was reported in 2010 when investors challenged the rules. Ask the planning office what applies to the plot today.

Building permits

• A building approval (PBG) replaced the old IMB. A functional worthiness certificate (SLF) confirms a finished building is fit for use. Ask for both, and compare the building with the approved plans.
• Check that a villa sold for rental has a tourism business licence, not only a residential permit.

The notary, the PPAT and the transfer

A land transfer deed is made by a land deed official (PPAT), who is often also a notary. Hak Pakai over freehold land is created by a PPAT deed signed with the landowner and registered at the land office. PPAT fees are capped by Ministry Regulation 33/2021 at 1 percent of the transaction price in the lowest band, falling to 0.75 percent above Rp 500 million, 0.5 percent above Rp 1 billion and 0.25 percent above Rp 2.5 billion, including witness fees. Ask for a written quote.

Integrated transfer service: in August 2026 the land ministry announced PERINTIS, an integrated transfer-of-rights service at 17 land offices aiming for completion within 10 days. The buyer applies for BPHTB validation with the regional revenue agency, the seller pays income tax, the parties sign within two days of validation, and the certificate is issued two working days after payment. Not every office offers it.

Tax can arise before the final deed. The acquisition duty falls due when a sale-and-purchase binding agreement is signed, and the seller's income tax also covers income under such agreements.

Taxes and fees when buying

Item	Who pays	Rate or rule
BPHTB (acquisition duty)	Buyer	Up to 5 percent of the acquisition value above an untaxed threshold, set by regional regulation, at least Rp 80 million for a first acquisition in that region. Based on the transaction price, or assessed value if higher.
Income tax on transfer (PPh)	Seller	2.5 percent final tax on the gross transfer value (Government Regulation 34/2016).
Land and building tax (PBB)	Owner, yearly	Up to 0.5 percent, applied to 20 to 100 percent of assessed value above a non-taxable amount of at least Rp 10 million, set regionally.
VAT and luxury goods sales tax	Depends on the deal	VAT (headline 12 percent, effectively 11 percent on most goods and services in 2026) may apply to some property supplies such as new buildings. Luxury goods sales tax, which ranges from 10 to 95 percent across goods, can apply to luxury residences, but the tax summary reviewed gives no separate home rate. Ask the notary.
Stamp duty	Per document	Rp 10,000 per document.
PPAT fee	Usually agreed	Capped as above.

Owners who later rent the property out pay a 10 percent final tax on gross rent, per a 2026 tax summary. Who bears each cost is a matter of negotiation, so write it into the deal.

What changed from 2021 to 2026

When	Change
February 2021	Government Regulation 18/2021 replaced the earlier foreigner housing rules, set Hak Pakai terms and allowed foreigners to hold apartment unit titles.
2022	Ministerial decree 1241/2022 set minimum prices for foreign-owned homes.
2023	The land ministry said foreigners with a passport and visa can own residential property, after the Job Creation Law was ratified as Law 6/2023.
July 2025	The land minister said no certificates for small outer islands had gone to foreigners. Bali's land office said the foreign interests it found were Hak Pakai certificates, 463 parcels.
November to December 2025	Government Regulation 48/2025 on neglected land. Bali passed its regional regulation against farmland conversion and nominee transfers.
January 2026	Constitutional Court decision on non-residential apartments.
2 February 2026	Girik and similar customary documents lost validity as ownership proof.
February 2026	Presidential Regulation 4/2026 tightened protected rice field rules.
August to September 2026	PERINTIS integrated transfer launched. NIB-El electronic parcel numbers introduced.

A sensible order of steps

1. Decide the route: Hak Pakai home, apartment unit, lease or PT PMA.
2. Get the certificate and land documents checked at the land office, and the spatial plan and rice field status checked in writing.
3. Check permits (PBG, SLF, business licence) and the actual building.
4. Agree who pays each tax and fee, and put the price thresholds in writing.
5. Sign the binding agreement only after the checks, then complete the deed before a PPAT.
6. Register the right at the land office and keep the certificate, receipts and tax proofs.

Where to get it done

• A licensed notary/PPAT for the deed, tax calculation and registration.
• The land office (Kantor Pertanahan, BPN) in the regency where the land lies, for certificate checks and registration.
• A licensed property lawyer for due diligence, lease drafting and company structuring.
• The regional revenue agency (Bapenda) for BPHTB and PBB, and the local planning and building permit office for zoning and PBG.
• The local immigration office for questions about the stay permit needed to complete a purchase.